FTI Consulting (FTI Consulting) Asset Turnover

: 0.28 (As of Dec. 2023)

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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. FTI Consulting's Revenue for the three months ended in Dec. 2023 was $925 Mil. FTI Consulting's Total Assets for the quarter that ended in Dec. 2023 was $3,322 Mil. Therefore, FTI Consulting's Asset Turnover for the quarter that ended in Dec. 2023 was 0.28.

Asset Turnover is linked to ROE % through Du Pont Formula. FTI Consulting's annualized ROE % for the quarter that ended in Dec. 2023 was 16.98%. It is also linked to ROA % through Du Pont Formula. FTI Consulting's annualized ROA % for the quarter that ended in Dec. 2023 was 9.83%.

FTI Consulting Asset Turnover Historical Data

The historical data trend for FTI Consulting's Asset Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

FTI Consulting Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Asset Turnover

0.91

0.89

0.95

0.96

1.06

FTI Consulting Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Asset Turnover																0.25	0.25	0.27	0.27	0.28

Competitive Comparison

For the Consulting Services subindustry, FTI Consulting's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

FTI Consulting Asset Turnover Distribution

For the Business Services industry and Industrials sector, FTI Consulting's Asset Turnover distribution charts can be found below:

* The bar in red indicates where FTI Consulting's Asset Turnover falls into.

FTI Consulting Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

FTI Consulting's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2023 )	/	( (Total Assets (A: Dec. 2022 )	+	Total Assets (A: Dec. 2023 ))	/ count )
=	3489.242	/	( (3241.407	+	3325.878)	/ 2 )
=	3489.242	/	3283.6425
=	1.06

FTI Consulting's Asset Turnover for the quarter that ended in Dec. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Dec. 2023 )	/	( (Total Assets (Q: Sep. 2023 )	+	Total Assets (Q: Dec. 2023 ))	/ count )
=	924.684	/	( (3318.826	+	3325.878)	/ 2 )
=	924.684	/	3322.352
=	0.28

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

FTI Consulting (NYSE:FCN) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

FTI Consulting's annulized ROE % for the quarter that ended in Dec. 2023 is

	ROE %^**		(Q: Dec. 2023 )
=	Net Income	/	Total Stockholders Equity
=	326.532	/	1922.9575
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(326.532 / 3698.736)	*	(3698.736 / 3322.352)	*	(3322.352/ 1922.9575)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	8.83 %	*	1.1133	*	1.7277
=	ROA %	*	Equity Multiplier
=	9.83 %	*	1.7277
=	16.98 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

FTI Consulting's annulized ROA % for the quarter that ended in Dec. 2023 is

	ROA %		(Q: Dec. 2023 )
=	Net Income	/	Total Assets
=	326.532	/	3322.352
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(326.532 / 3698.736)	*	(3698.736 / 3322.352)
=	Net Margin %	*	Asset Turnover
=	8.83 %	*	1.1133
=	9.83 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

FTI Consulting Asset Turnover Related Terms

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FTI Consulting (FTI Consulting) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » FTI Consulting Inc (NYSE:FCN) » Definitions » Asset Turnover

Comparable Companies

Traded in Other Exchanges

FCQ:Germany

Address

555 12th Street NW, Suite 700, Washington, DC, USA, 20004

Website

https://www.fticonsulting.com

FTI Consulting Inc is a firm that generates its sales by providing professional business advisory services to customers. The company operates through five segments, namely corporate finance and restructuring, forensic and litigation consulting, economic consulting, technology, and strategic communications. Customers of the company come from a wide array of sectors, including construction, energy and power, environmental, financial institutions, healthcare and life science, insurance, real estate and infrastructure, retail and consumer products, telecom, media, and technology. The majority of the company's revenue is derived from serving customers in the United States.

Executives

Holly Paul	officer: Chief Human Resources Officer	6016 KINGSFORD ROAD, BETHESDA MD 20817
Ajay Sabherwal	officer: Chief Financial Officer	C/O FAIRPOINT COMMUNICATIONS, INC., 521 E. MOREHEAD STREET, SUITE 500, CHARLOTTE NC 28202
Paul Alderman Linton	officer: Chief Strategy/Transf. Officer	5915 SONOMA ROAD, BETHESDA MD 20817
Mark S. Bartlett	director	4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Brenda J Bacon	director	909 COMMERCE ROAD, ANNAPOLIS MD 21403
Steven Henry Gunby	director, officer: President & CEO	9508 HEMSWELL PLACE, POTOMAC MD 20854
Elsy Lisa Boglioli	director	555 12TH STREET NW, WASHINGTON DC 20004
Curtis P Lu	officer: General Counsel	1203 STONNELL PLACE, ALEXANDRIA VA 22302
Vernon James Ellis	director	49 QUEENS GATE TERRACE, LONDON X0 SW7 5PN
Claudio Costamagna	director	VIA SEBETO 4, MILANO L6 20123
Stephen C Robinson	director	11780 U.S. HIGHWAY 1, SUITE 600, PALM BEACH GARDENS FL 33408
Nicole S Jones	director	1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL18Y, PHILADELPHIA PA 19192
Nicholas C Fanandakis	director	1007 MARKET STREET, WILMINGTON DE 19898
Gerard E Holthaus	director	3129 BLENDON ROAD, OWINGS MILLS MD 21117
Brendan J Keating	officer: CAO and Controller	C/O FTI CONSULTING INC, 555 12TH STREET NW, WASHINGTON DC 20004